According to the Executive Cotton Update US Macroeconomic Indicators & Cotton Supply Chain by Cotton, retail apparel prices have risen in recent months, but haven’t risen above pre-COVID levels (November apparel CPI in 2020). It was 1.7% lower than in February). It is built in. The average import cost these days was at the same level as before the pandemic.
Yarn and fiber prices fluctuated at pre-occurrence values (A index average rose 65% in December 2021 compared to February 2020, and Cotlook yarn index average rose 45% over the same period).
Statistically, the strongest correlation between textile prices and apparel import costs is about 9 months. This suggests that the soaring cotton prices that began in late September will continue to raise import costs for another five to six months. Higher procurement costs can eventually lead to higher retail prices above pre-pandemic levels.
According to the Executive Cotton Update US Macroeconomic Indicators & Cotton Supply Chain by Cotton, retail apparel prices have risen in recent months, but haven’t risen above pre-COVID levels (November apparel CPI in 2020). It was 1.7% lower than in February). It is built in. The average import cost these days was at the same level as before the pandemic.
Overall consumer spending was almost flat month-on-month in November (+ 0.03 percent). Year-over-year, overall spending increased by 7.4%. Apparel spending in November decreased month-on-month (-2.6%). This was the first month-on-month decline in three months (July was -2.7%, with an average of 1.6% month-on-month growth from August to October).
Apparel spending in November increased 18% year-on-year. Compared to the same month of 2019 (prior to COVID), apparel spending increased by 22.9%. The recent average growth in apparel spending is extraordinary, with a long-term average annual growth rate of 2.2% (2003-2019) in clothing spending, according to a Cotton Incorporated report.
The consumer price index (CPI) for apparel rose in November (latest available). Retail prices were 1.5% higher than the previous month. Compared to the previous year, prices were 5% higher. Despite monthly increases in seven of the last eight months, average retail prices are still lower than they were before the pandemic (November 2021 average retail prices compared to February 2020). -1.7%, seasonally adjusted data).
